
Displaying items by tag: demand
Salonit Anhovo suspends production
24 April 2020Slovenia: Salonit Anhovo suspended production from 20 April 2020 to 4 May 2020. SeeNews has reported the reason for the suspension as a lack of demand from its usual Italian and Slovenian markets amid the ongoing coronavirus crisis. Salonit Anhovo management board member Dejan Zwitter said, "We expect domestic sales to stabilise as the government is providing incentives for construction activities."
The company will continue to serve its customers with deliveries of it products.
Indonesia: Japan-based Taiheiyo Cement has announced its acquisition of a 15% stake in state-owned Semen Indonesia subsidiary Solusi Bangun Indonesia for between US$186m and US$232m, subject to the terms of a partnership agreement with Semen Indonesia.
Under the ‘2020 Mid-Term Management Plan,’ Taiheiyo Cement says that it aims to ‘become a corporate group with a strong presence in the Pacific Rim.’ Its partnership with Semen Indonesia is part of Taiheiyo Cement’s response to a forecasted long-term decline in domestic cement demand in Japan.
In the first quarter of 2020 Semen Indonesia sold 9.36Mt of cement, up by 7.0% year-on-year from 8.74Mt in the corresponding period of 2019. InsiderStories News has reported that domestic demand in the period fell by 4.9% to 14.9Mt from 15.7Mt, while exports fell by 2.5% to 1.39Mt from 1.42Mt but rose by 6.2% on a month-by-month basis in March 2020 to 3.09Mt from 2.91Mt in February 2020. April 2020’s cement sales are expected to be lower due to the impacts of the coronavirus outbreak.
Spanish cement demand falls in first quarter of 2020
23 April 2020Spain: Cement demand in the first quarter of 2020 was 3.14Mt, down by 13% year-on-year from 3.60Mt in the corresponding period of 2019. In March 2020 cement consumption in Spain was 924,000t, down by 28% year-on-year from 1.28Mt due to the effects of the coronavirus outbreak. Agencia EFE has reported that this is the lowest level of demand in any month since the immediate aftermath of the 2008 financial crash. Construction activity has been restricted by a government-imposed coronavirus lockdown since 14 March 2020.
On 23 April 2020 Spain’s confirmed coronavirus case count was 213,024, with 22,157 deaths.
Thailand: Siam City Cement has closed the production lines at its Plant 1 integrated cement plant in Saraburi province due to a lack of demand resulting from the coronavirus outbreak. In a statement the company said that, “The aftermath of the COVID-19 pandemic is seriously affecting the overall economic system and has already caused the global business and industrial sectors. The impact on us has been the drastic decline in demand both from domestic and regional markets.” It added that the closure was not expected to have an adverse impact on its operations. It is offering a ‘Mutual Separation Plan’ to affected workers in accordance with and beyond local labour regulations.
Normal production will continue at its Plant 2 and Plant 3 sites. In its 2019 annual report the cement producer said that it operated three cement plants in Kang Koi District, Saraburi Province with a total of six kilns and a combined clinker capacity of 13Mt/yr. However, only five kilns were in operation at this time with a combined production of 12Mt/yr.
This news story has been updated following clarification from Insee Cement.
Lehigh Cement plans plant closure due to coronavirus
16 April 2020US: Lehigh Cement has announced plans to suspend operations at its 0.5Mt/yr Glens Falls, New York, plant and associated Moreau quarry by 1 May 2020 in response to the coronavirus outbreak. The move will see its local staff of 90 reduced to 36 for the duration of the shutdown. Times Union newspaper has reported that Lehigh Cement will cover the 54 dismissed employees’ health insurance payments and ‘provide assistance in applying for unemployment and other layoff-related benefits.’ Lehigh Cement Glens Falls plant manager David Dreyer said, “We look forward to the day when our nation's health is no longer at such risk and our customers' demand for cement products returns, so we can welcome our employees back and resume full operation.”
Titan Cement publishes integrated annual report
15 April 2020Greece: Titan Cement has published its integrated annual report for 2019, a year in which its net profit fell by 5.5% year-on-year to Euro50.9m from Euro53.8m in 2018 and sales rose by 8.0% to Euro1.61bn from Euro1.49bn. The company noted its ‘sustained performance and stronger cash flow generation’ throughout the year, with growing demand in the US and Southeastern Europe and the beginning of growth in Greece, in spite of a 7.0% year-on-year fall in cement volumes to 17.0Mt from 18.2Mt in 2018. Challenging conditions in Egypt and Turkey caused the group’s performance to deteriorate.
Titan Cement said that it is ‘on track to meet the Group’s 2020 sustainability targets and has already met ‘all targets related to emissions and water consumption.’ It acknowledged inevitable ‘short-term impacts’ of coronavirus, including reduced sales volumes ‘particularly and more severely in the second quarter of 2020,’ and has strengthened its liquidity position to Euro400m.
Arabian Cement’s profit and sales fall in 2019
15 April 2020Egypt: Arabian Cement has reported an 88% decline in profit year-on-year to Euro 1.60m in 2019 from Euro13.3m in 2018. Sales were Euro181m, down by 5.5% from Euro 192m in 2018 due to depleted demand. Expansión newspaper called 2019 ‘the worst year in history for Egypt’s cement industry.’
Chinese cement production rebounds
14 April 2020China: The Ministry of Industry and Information Technology has published data showing 94% domestic cement production capacity utilisation in the two-week period ending 10 April 2020, marking an end to coronavirus shutdowns in all provinces. Excavator sales in March 2020 numbered 49,400, up by 12% year-on-year from 44,300 in March 2019. Construction materials analyst Xu Xianchun said, "Demand in the construction industry has basically recovered to 2019's level, driven by new and resumed projects." Xinhua News Agency has reported that cement prices have also climbed on a month-by-month basis.
Cement demand forecast to plunge in India
07 April 2020India: Cement manufacturers in India have seen a significant turn in fortunes since the start of 2020 due to the ongoing coronavirus outbreak. Producers, which had been raising prices and selling high volumes at the start of the year, are seeing a slump in demand in the wake of a nation-wide lockdown that began in mid-March 2020. Motilal Oswal Financial Services estimates that cement sales in March 2020 will be 40% lower than those seen in March 2019. Even after the lockdown ends, there will be severe knock-on effects for the remainder of India’s 2021 Fiscal Year (FY2021), which ends on 31 March 2021. This is expected to be due to weak economic growth, government cuts in spending on infrastructure and lower real estate demand.
Indeed, ratings agency CRISIL expects cement demand in India to contract by at least 10 - 15% in FY2021 compared to FY2020, with a ‘worst-case scenario’ of up to a 25% reduction.
The only respite that cement manufacturers may see is on the logistics side. With lower production volumes, transporters are offering more concessions on freight rates that will further help with costs, according to analysts. Low oil prices will benefit producers, while Petcoke prices may also remain relatively low.
LafargeHolcim rolls out Health, Cost and Cash cutbacks
30 March 2020Switzerland: LafargeHolcim has announced measures to limit the ‘volatile’ impacts of coronavirus on health and business. The measures, which overrule its previous 2020 guidance, consist of: a year-on-year capital expenditure (CAPEX) reduction of Euro378m, a year-on-year fixed cost reduction of Euro283m and a reduction of net working capital ‘at least in line with level of activity.’ LafargeHolcim has said that it had Euro7.56bn strongly liquid assets as of 26 March 2020.
LafargeHolcim predicted that global construction’s cement demand will decline in April and May 2020. It said the construction sector has begun to recover in China, where all of its cement plants outside of Hubei province are once more operational. It expects to deliver 70% of it April 2019 Chinese volumes in April 2020.